Tag Archives: SmallCap Debt

Toxic Debt: What is it and How Can Micro-Cap CEO’s Avoid it? [Guest Post]

Guest Post By: Mike Starkweather The term toxic debt gets tossed around regularly in the micro-cap space, and yet most people don’t understand what it means or why a CEO would accept a loan with such volatile terms. First, it is important to understand what the term toxic debt indicates before we can break down how debt becomes toxic and why

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Rising Interest Rates Could Crush Some Small Caps

A recent post on CFO.com summarizes the Institute of International Finance’s (IIF) latest capital markets monitor report. According to the IIF’s latest capital markets monitor report, “U.S. Corporates’ Net Debt: An Uneven Burden,” in the last 10 years “U.S. corporations have experienced a deterioration in their ability to pay interest on outstanding debt.” “While leverage has increased across the board

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